Insured: farmer’s civil liability
E.g. The cow, fleeing the enclosure, escapes to the road and causes an accident.
The farmer must compensate the victims:
Car repair costs (if the driver is insured, the farmer can apply to the insurance company to claim damages).
Victims’ treatment costs (not reimbursed by the state).
Loss of income of victims: Income is lost when a person loses part of their previous earnings due to an injury.
The lawyers of the insurance company will investigate the validity of the claims submitted by the victims and, if the claim is justified, will indemnify the incurred losses.